Life Insurance Washington
7-pay Test - ANS-Any existence insurance coverage that fails a 7-pay check is assessed as an
MEC and loses the standard tax blessings of a life insurance settlement.
A man or woman who's knowingly made a false/deceptive assertion or impersonation or who's
willfully failed to reveal a material reality in an software for coverage is guilty of what? - ANS-A
gross misdemeanor.
Absolute Assignment - ANS-Involves shifting all rights of possession to another individual/entity.
Permanent and general transfer of all of the coverage rights.
Acceptance - ANS-Takes region when an insurer's underwriter approves the utility and problems
a coverage.
Accidental Death & Dismemberment Rider (AD&D) - ANS-Pays the principal (face quantity) for
unintentional death & will pay a percent of that quantity (capital sum) for unintended
dismemberment.
Adjustable Life Policy - ANS-Assumes the shape of either time period or everlasting. Insured
determines how much insurance is wanted and the low cost amount of premium. Insurer
determines the proper type of insurance to meet insured's needs.
Agent/manufacturer - ANS-Individual licensed to sell, solicit or negotiate coverage contracts on
behalf of the main (insurer).
Alien Insurer - ANS-Insurance enterprise incorporated outdoor the United States.
An permitted path for which the licensee has previous claimed credit score can be repeated for
credit after a period of ways long? - ANS-3 yrs from the previous of completion date.
Annually Renewable Term - ANS-Purest shape of term insurance, the DB remains the same and
the coverage is guaranteed to be renewable every 12 months w/o evidence of insurability
however the top class increases yearly in step with attained age.
Annuities Certain - ANS-Short-term annuities that restriction the amounts paid to a positive
constant length or till a certain constant quantity is liquidated.
Annuity - ANS-Contract that gives income for detailed length of years (or lifestyles). Not life
insurance but vehicle for accumulation of money and liquidation of an estate.
,Any time a commercial enterprise is the named beneficiary of a life insurance coverage, or has
the useful hobby in the policy, any premiums that the commercial enterprise will pay for
coverage are what? - ANS-Not tax deductible.
Apparent (Perceived) Authority - ANS-Appearance or the belief of authority based totally on the
movements, phrases, or deeds of the foremost or b/c of the occasions the principal created.
Are payments of the predominant face amount after the insured's death taxable as earnings? -
ANS-No they're not.
Are premiums tax deductible? - ANS-No they are not.
Backdating - ANS-Policy can be backdated no greater than 6 months earlier than the date of the
software or medical examination (whichever is later). Only allowable purpose is to affect a lower
top rate.
Bail-Out Provision - ANS-Allows agreement holder, within the event that hobby rates drop a
certain quantity within a distinctive time frame, to surrender the agreement without price.
Cash Refund - ANS-When annuitant dies, the beneficiary receives a lump-sum refund of the
primary minus advantage bills already made to the annuitant.
Certificate of Authority - ANS-Granted by way of state department of coverage & must meet any
financial requirements set via the country. Those who have met these standards and are
accredited are considered legal or admitted into the kingdom as felony insurers.
Claimant - ANS-Either a first party, 0.33 birthday celebration, or each and consists of such
claimant's distinct criminal representative and a member of the claimant's instantaneous own
family designated with the aid of the claimant.
Collateral Assignment - ANS-Transfer of partial rights to some other man or woman. Usually
completed to be able to comfy a loan or some other transaction. Partial/brief of some coverage
rights. Once the debt/mortgage is repaid, assigned rights are back to policyowner.
Concealment - ANS-The intentional withholding of records of a fabric truth that's vital in creating
a selections.
Conditional Receipt - ANS-Says that insurance may be effective either at the date of the utility or
the date of the medical examination (whichever takes place remaining).
Conservation - ANS-Any strive by way of an existing insurer/manufacturer to dissuade a
modern-day policyowner from the alternative of current life coverage/annuity.
, Credit Insurance - ANS-Written to insure the lifestyles of the debtor and repay the stability of a
loan inside the occasion of the dying of the debtor. Written as a decreasing term insurance.
Declined Risks - ANS-Applicants who're rejected.
Decreasing Term Policies - ANS-Level top class & DB that decreases each yr over policy term.
Used while time sensitive. Purchased to insure payment of loan/different money owed if insured
dies in advance.
Delivery Receipt - ANS-When an agent hand delivers an person coverage or annuity to the
policyowner, the agent must obtained a signed the sort of.
Domestic Insurer - ANS-Insurance company this is incorporated in the state.
Entire Contract - ANS-Stipulates that the policy & a replica of the application along with any
riders or amendments constitute the complete contract.
Executive Bonus - ANS-Arrangement where employer offers to provide the employee a salary
growth in the quantity of the premium on a brand new lifestyles coverage coverage on the
worker.
Express Authority - ANS-Authority a most important intends to furnish an agent via the agent's
agreement (written inside the contract).
Extended Term Option - ANS-The insurer makes use of the coverage cash fee to convert to time
period coverage for the equal face quantity because the former permanent coverage. The
length of the new term insurance lasts for as lengthy a period as the quantity of cash price will
purchase.
Fair Credit Reporting Act - ANS-Established methods that client-reporting businesses need to
follow so as to make sure that records are exclusive, correct, relevant, and nicely used. Also
protects customers against flow of faulty/obsolete private or monetary data.
First Party Claimant - ANS-Individual, corp, affiliation, partnership, or different felony entity
putting forward the proper to payment beneath an coverage policy bobbing up out of the
incidence of a loss covered by means of such a policy.
For what sort of coverage is there a max. Age above which coverage won't be provided and at
which it cannot be renewed? - ANS-Term (natural existence) insurance.
Foreign Insurer - ANS-Insurance company it really is incorporated in any other country or
territorial possession (Puerto Rico, Guam, American Samoa).
7-pay Test - ANS-Any existence insurance coverage that fails a 7-pay check is assessed as an
MEC and loses the standard tax blessings of a life insurance settlement.
A man or woman who's knowingly made a false/deceptive assertion or impersonation or who's
willfully failed to reveal a material reality in an software for coverage is guilty of what? - ANS-A
gross misdemeanor.
Absolute Assignment - ANS-Involves shifting all rights of possession to another individual/entity.
Permanent and general transfer of all of the coverage rights.
Acceptance - ANS-Takes region when an insurer's underwriter approves the utility and problems
a coverage.
Accidental Death & Dismemberment Rider (AD&D) - ANS-Pays the principal (face quantity) for
unintentional death & will pay a percent of that quantity (capital sum) for unintended
dismemberment.
Adjustable Life Policy - ANS-Assumes the shape of either time period or everlasting. Insured
determines how much insurance is wanted and the low cost amount of premium. Insurer
determines the proper type of insurance to meet insured's needs.
Agent/manufacturer - ANS-Individual licensed to sell, solicit or negotiate coverage contracts on
behalf of the main (insurer).
Alien Insurer - ANS-Insurance enterprise incorporated outdoor the United States.
An permitted path for which the licensee has previous claimed credit score can be repeated for
credit after a period of ways long? - ANS-3 yrs from the previous of completion date.
Annually Renewable Term - ANS-Purest shape of term insurance, the DB remains the same and
the coverage is guaranteed to be renewable every 12 months w/o evidence of insurability
however the top class increases yearly in step with attained age.
Annuities Certain - ANS-Short-term annuities that restriction the amounts paid to a positive
constant length or till a certain constant quantity is liquidated.
Annuity - ANS-Contract that gives income for detailed length of years (or lifestyles). Not life
insurance but vehicle for accumulation of money and liquidation of an estate.
,Any time a commercial enterprise is the named beneficiary of a life insurance coverage, or has
the useful hobby in the policy, any premiums that the commercial enterprise will pay for
coverage are what? - ANS-Not tax deductible.
Apparent (Perceived) Authority - ANS-Appearance or the belief of authority based totally on the
movements, phrases, or deeds of the foremost or b/c of the occasions the principal created.
Are payments of the predominant face amount after the insured's death taxable as earnings? -
ANS-No they're not.
Are premiums tax deductible? - ANS-No they are not.
Backdating - ANS-Policy can be backdated no greater than 6 months earlier than the date of the
software or medical examination (whichever is later). Only allowable purpose is to affect a lower
top rate.
Bail-Out Provision - ANS-Allows agreement holder, within the event that hobby rates drop a
certain quantity within a distinctive time frame, to surrender the agreement without price.
Cash Refund - ANS-When annuitant dies, the beneficiary receives a lump-sum refund of the
primary minus advantage bills already made to the annuitant.
Certificate of Authority - ANS-Granted by way of state department of coverage & must meet any
financial requirements set via the country. Those who have met these standards and are
accredited are considered legal or admitted into the kingdom as felony insurers.
Claimant - ANS-Either a first party, 0.33 birthday celebration, or each and consists of such
claimant's distinct criminal representative and a member of the claimant's instantaneous own
family designated with the aid of the claimant.
Collateral Assignment - ANS-Transfer of partial rights to some other man or woman. Usually
completed to be able to comfy a loan or some other transaction. Partial/brief of some coverage
rights. Once the debt/mortgage is repaid, assigned rights are back to policyowner.
Concealment - ANS-The intentional withholding of records of a fabric truth that's vital in creating
a selections.
Conditional Receipt - ANS-Says that insurance may be effective either at the date of the utility or
the date of the medical examination (whichever takes place remaining).
Conservation - ANS-Any strive by way of an existing insurer/manufacturer to dissuade a
modern-day policyowner from the alternative of current life coverage/annuity.
, Credit Insurance - ANS-Written to insure the lifestyles of the debtor and repay the stability of a
loan inside the occasion of the dying of the debtor. Written as a decreasing term insurance.
Declined Risks - ANS-Applicants who're rejected.
Decreasing Term Policies - ANS-Level top class & DB that decreases each yr over policy term.
Used while time sensitive. Purchased to insure payment of loan/different money owed if insured
dies in advance.
Delivery Receipt - ANS-When an agent hand delivers an person coverage or annuity to the
policyowner, the agent must obtained a signed the sort of.
Domestic Insurer - ANS-Insurance company this is incorporated in the state.
Entire Contract - ANS-Stipulates that the policy & a replica of the application along with any
riders or amendments constitute the complete contract.
Executive Bonus - ANS-Arrangement where employer offers to provide the employee a salary
growth in the quantity of the premium on a brand new lifestyles coverage coverage on the
worker.
Express Authority - ANS-Authority a most important intends to furnish an agent via the agent's
agreement (written inside the contract).
Extended Term Option - ANS-The insurer makes use of the coverage cash fee to convert to time
period coverage for the equal face quantity because the former permanent coverage. The
length of the new term insurance lasts for as lengthy a period as the quantity of cash price will
purchase.
Fair Credit Reporting Act - ANS-Established methods that client-reporting businesses need to
follow so as to make sure that records are exclusive, correct, relevant, and nicely used. Also
protects customers against flow of faulty/obsolete private or monetary data.
First Party Claimant - ANS-Individual, corp, affiliation, partnership, or different felony entity
putting forward the proper to payment beneath an coverage policy bobbing up out of the
incidence of a loss covered by means of such a policy.
For what sort of coverage is there a max. Age above which coverage won't be provided and at
which it cannot be renewed? - ANS-Term (natural existence) insurance.
Foreign Insurer - ANS-Insurance company it really is incorporated in any other country or
territorial possession (Puerto Rico, Guam, American Samoa).
